Credit Review

Front

A person has multiple credit cards with very large outstanding balances and is unable to make payments on any of them. Which should they do? Options: Ignore the debts and hope they go away., File for bankruptcy without seeking advice., Notify the credit card companies in order to negotiate a new payment plan., Max out another credit card to pay off the others.

Back

Notify the credit card companies in order to negotiate a new payment plan.

Front

What laws prevent lenders from charging too much interest?

Back

Usury laws

Front

Consumer finance companies (bad lenders) are also known as: banks, small loan companies, savings associations, credit unions

Back

small loan companies

Front

Which law requires that the cost of credit be disclosed to consumers in bold print on the loan agreement?

Back

Truth in Lending Act (TILA)

Front

What is the true cost of credit that must be disclosed on a loan agreement?

Back

The total interest, fees, and other costs, typically expressed as the Annual Percentage Rate (APR).

Front

An example of closed-end (installment) credit is a

Back

auto loan

Front

When you charge a purchase on your credit card, you create what for yourself?

Back

Debt

Front

How can you establish credit worthiness?

Back

Maintain a good credit score and manage debt responsibly.

Front

When you mail your credit card payment ON the due date, your payment will be considered

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on time

Front

What is a Creditor?

Back

A creditor is a person or entity that lends money or extends credit.